Finance applications surge amidst rising costs

Car finance company Carmoney has discovered that there has been a 105% increase in the number of car finance applications in the past year.

It has also identified a 53% increase in motorists applying for car finance with zero deposit and a 70% increase in car finance applications from younger drivers aged 18-24.

This has been attributed to the rising cost of living meaning households have less disposable income.

Andrew Marshall, marketing and partnerships manager at Carmoney sais: “Everyone is looking to tighten their belts this year due to the current financial crisis, and motorists are certainly feeling the pinch. It is no surprise then, that we’re seeing a higher amount of motorists applying for the finance option when it comes to purchasing their next car – this enables drivers to leave with a new vehicle without the initial large payment that many people won’t be able to afford right now.

“We also expect to see the increase in people opting for lower deposits and lower value car models in order to keep within their budget. We would advise that motorists research finance options that they can comfortably afford and bear in mind APR rates in order to avoid the risk of falling behind on payments.”